I just learned a lesson. It does not make sense to me, and it is definitely not clear in the Residential Tenancy Act. I hope my experience can save someone from making the same mistake.

I rented my house out for a 3-month term. I was not concerned about the exact duration of the rental at the time I signed the contract, I made it 3-months just so I give myself a chance re-evaluate the situation. I used the formal contract from the Residential Tenancy Branch, and checked the second box under the Fixed Term section -- the tenant must moved out at the end of the term, and both the tenant and myself must initial.

However, the tenant refused to initial. His reasoning was that, by doing that, it gave me the power to significantly increase his rent if I decide to continue the rental. Moreover, he said if I decided to end the tenancy, then checking the first box under Fixed Term allowed me to do that.

The official wording on the fixed term is: "At the end of this fixed length of time, the tenancy may continue on a month-to-month basis or another fixed length of time." I take it to mean I can sign a new fixed term contract at the end of the first tenancy, or I can sign a new month-to-month contract. So, I reasoned it really made no difference, after all, it is still under the section "fixed length of time" so it is still a fixed term, right?

WRONG!

Just one month into the tenancy, I decided I wanted to end the tenancy. I notified the tenant, essentially giving him two months of verbal notice. He went back on his words and refused to leave. Our relationship deteriorated so quickly that I have every reason to take possession back ASAP. So I decided to end the tenancy by moving back into my house.

It was at that time that I found out more surprises:
1. The contract is really in essence "month-to-month" in the eyes of the Residential Tenancy branch, regardless of the fact that the wording says "fixed length of time."
2. I needed to serve an end of tenancy notice.
3. The tenant does not have to pay last month's rent.
4. I cannot rent or sell my house for 6 months.

#3 was hardest to take. I rented my house out with a very small margin to begin with, so not getting one month's rent essentially put me under the money. In addition, it makes the security deposit a joke. I would never had signed that contract or even rent my house out for the rent I was asking if I had known.

The lesson I learned was, under ALL circumstances, always make the contract fixed term and get the tenant to initial that he MUST move out. If you decide to continue renting, return the security deposit at the end of the tenancy, and then sign a NEW FIXED TERM contract again. No buts or ifs, ALWAYS do that.